India speeds up $11 bln fighter jets purchase

[Choppers]

India speeds up $11 bln fighter jets purchase​

By Bappa Majumdar

NEW DELHI, Feb 19 (Reuters) - India will narrow down the number of bidders by mid-2010 for its $11 billion fighter jet tender, a minister said, in a closely watched deal where diplomacy and strategic interests will play a big role.

Lockheed Martin's F-16 is competing with Boeing's F/A-18 Super Hornet, France's Dassault Rafale, Russia's MiG-35, Sweden's Saab (SAABb.ST) JAS-39 Gripen and the Eurofighter Typhoon, produced by a consortium of European companies.

The acquisition of 126 air and ground attack fighters will elevate India's air force to a super-power status, with deployments planned near the western and northeast borders to tackle any threats from Pakistan or China, officials say.

India fears China could be trying to strategically encircle it as they jostle for resources and global influence, while Pakistan has the U.S. F-16 fighters in its fleet, forcing New Delhi to buy planes that can shoot at targets 30 miles away.

"The trials should conclude by the middle of this year," Pallam Raju, India's junior defence minister, told Reuters on the sidelines of an arms fair in New Delhi this week.

"Once the trials are concluded, then we will be looking into the financial bids. We are speeding up things."

While Lockheed's F-16 has completed trials which began last August, the other five, including the MiG-35 from Russia, India's traditional supplier of weapons, and Sweden's Gripen, are in the midst of field trials. The phased trials will end by April.

Interest into the lucrative deal picked up worldwide after India's ambassador to Italy told reporters in Rome last month that the Eurofighter Typhoon, conceived and built by Germany, Spain, Italy and Britain, was leading in the race.

This week, Indian Defence Minister A.K. Antony took some flying lessons at the New Delhi fair in a cockpit simulator of the Eurofighter, which defence officials privately acknowledge is a frontrunner to win the contract.

New Delhi is also keen to diversify its weapons acquisition from European countries, said Brahma Chellaney, a professor on strategic studies at the Centre for Policy Research.

"By engaging in this campaign, India would ensure virtually a partnership, a strategic partnership on the political level with the rest of Europe," Matthias Schmidlin, campaign director of the Typhoon, told Reuters.

DEEPENING U.S. TIES

Security experts say New Delhi's growing ties with Washington, seen as a counterweight against China, might tilt the scale towards the two U.S. companies in the fray.

India and the United States signed a landmark civilian nuclear deal in 2008 and another pact in July last year, facilitating the entry of U.S. companies like Lockheed and Boeing into India's lucrative defence market.

"Over the last few years, the U.S.- India relationship in the defence sector has strengthened significantly and we are very optimistic regarding the future of this relation," said Vivek Lall, head (India) of Boeing defence.

Indian Air Force officials were also seen getting into cockpit simulators of the F/A-18 Super Hornet and Lockheed's F-16 -- two stalls located near each other at the arms fair.

"But we are not together on this one (trials). It is a keenly fought contest," a Lockheed official said, underlining the fierce contest by defence companies lined up at India's door for a share of the $100 billion defence market pie.

Some experts say the U.S. government's refusal to transfer full technology to India could turn out to be a roadblock when it comes to choosing the fighter India wants.

Russia's MiG-35, and France's Rafale are also keenly watched by experts, and are equally strong contenders, officials say.

"The decison will be based on multiple matrices. First it must match user requirements and then it will go to the political arena," said Uday Bhaskar, director of the National Maritime Foundation, a New Delhi-based defence think tank. (Editing by Paul de Bendern and Ron Popeski)

India speeds up $11 bln fighter jets purchase | Reuters

 

[gowthamraj]

when will winner announced

 

[Cheetah786]

when will winner announced

I hope this is decided before Americans colonize Mars.

 

[Dawkins]

I hope this is decided before Americans colonize Mars.

Thats still better than a certain Mr. 10% taking his cut

 

[Cheetah786]

Thats still better than a certain Mr. 10% taking his cut

Wow what a come back i am speech less.

Wasnt this Announced just in Time when wright brothers were working on first flying Machine.

 

[DMLA]

when will winner announced

As early as mid-2011. However, there could be problems depending on how the different parties respond to the short-listing process. In india, you as a contractor can go to the courts (if you are not selected of course ) and the entire process will then be put on suspension!!!

 

[jha]

stop the BS guys....

here you go..

Boeing Curries Favor in India


Things are not looking good for Boeing (NYSE: BA) Defense.

Although the company has made inroads in UAVs, it suffered along with Lockheed Martin (NYSE: LMT) last year when the Pentagon plucked funding for their F-22 Raptor. And while Lockheed has the next-gen F-35 Lightning II program to fall back on, the common wisdom in Pentagon hallways is that the F-35 will be the last manned fighter jet the U.S. manufactures -- meaning there won't be a next big fighter jet program for Boeing to bid on.

In short, Boeing's role in producing manned fighter jets seems limited to hawking Cold War relics to Third World countries -- which is precisely why it must win the competition in India.

Doing the deal in Dehli
Two years ago, I told you about the multibillion-dollar arms deal India has floated, inviting MiG, Saab, and Eurofighter to compete with Boeing and Lockheed to sell the country 126 fighter jets to update India's aging air force. Over the intervening years, both Boeing and Lockheed have advanced their chances of success by making "shoehorn" sales into the Indian market.

First Lockheed and partner Honeywell (NYSE: HON) scored a six-plane deal to sell India C130-J military transports. Then Boeing upped the ante when it, along with partners Northrop Grumman (NYSE: NOC) and Raytheon (NYSE: RTN), landed a P-8A Poseidon subhunter sale twice as large. (Incidentally, in so doing, they've opened the door for United Technologies (NYSE: UTX) and Textron (NYSE: TXT) to compete for Indian helicopter contracts. United Technologies subsidiary Sikorsky recently announced plans to make Black Hawks in India, and said it expects to bid on $8 billion-$12 billion in Indian contracts by 2018.)

But now, these gains are at risk. Reports out of India suggest that Eurofighter has taken an early lead in field trials for the contract, while both Saab and Mikoyan's MiG offerings are considered strong contenders. Phased trials should conclude in April, at which point India will shift consideration to matters of price. It's here that Boeing must find its edge.

No price too low
Lacking a willing customer in the United States (which recently shot down Boeing's suggestion that the F/A-18 could fill a perceived gap in the F-35 supply line), and lacking a next-gen fighter jet to build post-F-35, Boeing must seize the chance to shore up international sales of what it's got left -- the F/A-18. If Boeing wishes to remain in the manned fighter jet game, it must offer India a price too good to be true.

The alternative: Lockheed's F-35 will eventually arrive. It will grab more and more market share. Its per-unit cost will decline with each incremental sale. And ultimately, Boeing's jets will be priced out of the market.

Now's the time to act, Boeing: Give 'em a price too low to refuse.

Boeing Curries Favor in India (BA)

what you say..are we going to get an offer tooo gooddd to refuse,,,???

 

[Chanakyaa]

Actually even with the current price f18 is the best if we get ToT:

Its tested, has AESA READY, is cost effective and has excellent ground attck capabilities. Plus is the backbone of USN.

Mki for air dominance and f18 for ground attck makes IAF invincible .

 

[jha]

and dont forget, we might have our hands on GROWLER...

 

[TOPGUN]

So in reality wat fighter do you guys think will win ??

 

[attitude]

Actually even with the current price f18 is the best if we get ToT:

Its tested, has AESA READY, is cost effective and has excellent ground attck capabilities. Plus is the backbone of USN.

Mki for air dominance and f18 for ground attck makes IAF invincible .

f18 is good plane but orders shuld not be to single plane
order should be 200+ and for two planes

f18 and rafale is good option

 

[Chanakyaa]

Attitude, i agree with u 200%.

 

[jha]

if f-18 is chosen then the next 100 should be EUROFIGHTER.

 

[attitude]

well if i have to choose
then

100 f18
100 raffale
29 mig 29
150 lca
200 pak-fa
30 f35 for navy

and mca

guys just think how will be our air power

 

[Dawkins]

f18 is good plane but orders shuld not be to single plane
order should be 200+ and for two planes

f18 and rafale is good option

if f-18 is chosen then the next 100 should be EUROFIGHTER.

Walmart khol rakha hai kya aircraft inventory ka ? Russian mki/Mig-29/FGFA, Indian LCA, French Mirage-2000, British Jaguar, assuming American F-18 is chosen as first choice u want European Eurofighter or French Rafale in addition to that

Lets not forget the requirement; its MMRCA-Medium Multi-Role Combat Aircraft. The Gripen & F-16 were more like what the IAF actually wanted, others came to the party later on. Why would we seriously overburden the Air Force with insane logistic issues by providing two heavy hitters instead of one MMRC aircraft, forgetting what they actually asked for in the first place?